The market value exceeded US$1 billion in three months, looking back at the rise of 'Golden Dog' DEGEN

If you have played with the Base chain recently, then you must know that the most popular token on it is called Degen, and its market value today exceeded 1.5 billion US dollars. After the launch of the Degen channel on Farcaster in January 2024, users will be allowed to use Degen to reward high-quality content creators. As of now, there are more than 83,000 holders and it is still growing rapidly. So how did Degen grow into a $1 billion "golden dog"?

New airdrop gameplay (rewarding)

At the beginning of this month, Degen actively participated in community discussions in the Farcaster community. Community members rewarded their favorite high-quality content in the form of the number of comments and DEGEN. Degen will obtain a daily allowance (allowance) for tipping others based on the user's farcaster activity and engagement. The airdrop quota is based on the total number of tips the user receives from others every quarter. Therefore, users need to post good content on Farcaster to receive rewards. , many active users even reward thousands of dollars every day.

Community Niche Communication

The price of Degen ushered in the first wave of increase with the popularity of the community. At this time, the market value of Degen reached 10 million and increased to about 50 million. In turn, Degen also brought a wave of user growth to Farcaster. Teacher Pingfeng’s description of Degen’s reward is very apt:

Angel round financing

In February, Degen announced the completion of 490.5 ETH (approximately 1.47 million US dollars) ) Angel round financing, led by 1confirmation, with participation from Farcaster, OG, etc. The funds will be used to develop the Degen ecosystem and community. It can be seen that part of the amount was given to some community projects, such as Drakula, etc., including Degen's utility.

Application Empowerment

Dracula was released on 3.14. This application was created by Alex Masmej, the former issuer of fan token $ALEX, and received Investment from Paradigm. Due to this incident, the Degen community awarded the Dracula community 10M DEGEN (currently worth $500,000). Dracula’s app uses degen tokens to purchase favorite bloggers, similar to how Friend Tech plays. Users can also earn rewards by posting and watching short videos, sharing links, and purchasing creator tokens, while using BLOOD for tipping. The application provides users with a platform to explore and share on-chain content and enables token revenue sharing.

In addition, similar to the NFT casting platform zora, community projects http://Bracket.Game and http://Rounds.wtf also use degen as native tokens. At this time, the market value of Degen has grown to about 70m-100m. DegenCast will also use Degen to buy the creator’s Key.

Degen L3

Degen started cheating on March 20th. First, on March 29th, Degen announced its cooperation with Syndicate to develop a News about Base's L3, Degen Chain's Gas token is also DEGEN. So far, Degen Chain has more than 4 million transactions and more than 100k wallets.

The second news is that Merkle Manufactory, the parent company of Farcaster, raised funds at a valuation of US$1 billion, with the founder of Paradigm leading the investment. Since Farcaster did not issue tokens, the community began to view this financing as a benefit to $Degen.

Since Degen released L3, the entire valuation space has been benchmarked against major public chains. It can even be said that $Degen has become the token of Base, and its market value has generally risen to 2B within a few days.

Inspiration of Degen

Degen originated from the Farcaster community and is rooted in the Base chain. It can be said that it achieves mutual success with Farcaster/Base and the price of Degen attracts Users, without the Farcaster community, Degen would not be produced. The Farcaster community project also provides application scenarios for Degen.

Degen’s narrative has evolved from community project self-entertainment tokens, to social core project utility tokens, to public chain gas tokens, from 10M to 100m to 1B. Each narrative progress represents The magnitude of valuation increases.

The rise of Degen has also given Farcaster a path for community project development. Follow-up projects such as Drakula, DegenCast, etc. are worth looking forward to.

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